January 4, 2024
The Ministry of Heavy Industries (MHI) announced this decision, which received approval from the Empowered Group of Secretaries (EGoS)
The disbursement of the incentive is scheduled for the financial year 2024-25
If a company fails to meet the threshold for an increase in Determined Sales Value in the initial year, it will not receive any incentive for that year
The statement emphasised that this provision is aimed at ensuring fairness for all companies
The government has extended the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components for an additional year. The MHI announced this decision, which received approval from the EGoS. The amendments aim to enhance clarity and flexibility within the scheme.
Under the updated terms, the PLI incentive will now be applicable for five consecutive financial years, starting from the fiscal year 2023-24. The disbursement of the incentive is scheduled for the financial year 2024-25. Approved applicants can avail of benefits for five consecutive financial years but up to the financial year ending on March 31, 2028.
Furthermore, the statement outlines that if a company fails to meet the threshold for an increase in Determined Sales Value in the initial year, it will not receive any incentive for that year. However, the company remains eligible for benefits in the subsequent year if it achieves the threshold with a 10% year-on-year growth over the first year’s threshold.
This provision ensures a fair playing field for all approved companies and safeguards those who opted for front-loading their investments. The statement emphasised that this provision aims to ensure fairness for all companies.
Source: Economic Times